State governments face losses of hundreds of millions in property tax revenue for local services in the budget after a printing and mailing vendor failed to send property assessments to over 100,000 accounts this year.
Submitted photo
By Tara Fischer, Staff Writer
Maryland governments face losses of hundreds of millions in property tax revenue for education, law enforcement, and other local services in the budget after a printing and mailing vendor failed to send property assessments to over 100,000 accounts this year.
According to a statement from State Department of Assessments and Taxation Director Michael Higgs, a printing process error by the League for People with Disabilities, the vendor responsible for the property evaluations, resulted in 107,000 accounts not receiving their new projected home value notice by the Jan. 30 deadline. The recipients can expect the documents in the coming weeks.
Maryland Matters explained that property tax is a significant source of revenue for local governments. One-third of the state’s properties are reassessed each year and given a new value. The tax amount owed is adjusted based on the revised calculation, often higher than the prior analysis.
As per current law, owners must be given time to review the updated value and appeal it if they disagree with the estimate. The property value and the tax remain the same from the previous assessment if the notice is sent after the deadline.
Lawmakers believe this mistake could put municipal governments hundreds of millions of dollars short in funding for school systems and the police force if the issue is not resolved.
“I didn’t get a total number, but it was in the hundreds of millions of dollars, not in the tens of millions,” Senate President Bill Ferguson (D-46) said in a Maryland Matters article.
Higgs’ statement assured that his team is working “in partnership with the General Assembly to draft legislation that will enable a temporary timeline adjustment to distribute the reassessment notices.” He also promised that every homeowner would receive their valuation and be given the full 45-day timeframe to review and appeal.
The Maryland General is halfway through their 90-day session, and any late-filed bills may face roadblocks. However, lawmakers could amend existing bills to account for an adjusted deadline, like Sen. Guy Guzzone’s (D-13) Senate Bill 1027, which defines “taxpayer” in relation to property tax appeals, Maryland Matters reported.
“Local governments depend on property tax revenue the most,” Del. Wayne Hartman (R-38C) said. “If it can’t be resolved, it will hurt counties for three years. We also don’t know how many of these missed properties are in Worcester County as opposed to Wicomico County.”
Hartman said he and many of his peers have yet to be briefed on the costly mistake and the plans to fix it. “I found out about this through a Maryland Matters report,” he said. “The lack of transparency is concerning.”